Sebi asks Ramel Industries to refund investor money in 3 mths

Continuing its clamp down on illegal investment activities, market regulator Sebi has asked Ramel Industries to immediately wind down its scheme that raised over Rs 97 crore from investors and to repay them "within three months".
Securities and Exchange Board of India has also barred Ramel Industries as well as its promoters and directors from dealing in capital markets till the refund is complete.
Sebi found that Ramel Industries was operating Collective Investment Schemes (CIS) without obtaining its approval.
As per Sebi's finding, the company has been mobilising money from the public by offering returns.
"The company had collected an amount of Rs 97.8 crore under its schemes in the guise of operating CIS as of March 2012," Sebi noted.

Ramel Industries, its promoters and directors have been directed to "not collect any money from investors or launch or carry out any scheme which has been identified as a collective investment scheme" it said in an order dated July 11, 2014.

"Ramel Industries shall wind up its existing CIS and refund the monies collected under its schemes with returns which are due to its investors as per the terms of offer, within a period of three months from the date of this order," Sebi said.
Asking Ramel Industries Ray to wind up its CIS schemes immediately, it said the entity should submit a winding up and repayment report.

In case of non-compliance with the order, Sebi has warned that prosecution proceedings would be initiated against the company, promoters and directors.
In recent times, Sebi has clamped down on various fraudulent investment schemes in many states.